Nasdaq futures jumped on Thursday to lead a rebound in US stocks as Tesla’s (TSLA) surprisingly solid results and high-flying sales forecast lifted hopes for a strong earnings season.
Futures on the tech-heavy Nasdaq 100 (NQ=F) surged almost 0.9%, while S&P 500 futures (ES=F) rose 0.5%. But Dow Jones Industrial Average futures (YM=F) struggled to join the advance, edging down 0.1%.
Tesla kicked off “Magnificent Seven” earnings with its biggest quarterly profit in over a year, driving a wave of optimism that set stocks up for a comeback from Wednesday’s sharp losses.
Shares in Tesla surged over 13% in premarket — set to add over $80 billion in market cap — as investors welcomed CEO Elon Musk’s forecast that EV sales could grow 20-30% next year. Amazon (AMZN), Meta (META), and other tech megacaps ticked higher after lagging the previous session.
Elsewhere in corporates, Boeing (BA) shares sagged almost 4% after striking workers rebuffed its pay deal, on the heels of planemaker’s $6 billion quarterly loss. It’s the latest in a string of rough news for stocks on the Dow.
Meanwhile, the 10-year Treasury yield (^TNX) fell back after topping 4.25% on Wednesday amid worries that the Federal Reserve won’t cut interest rates as quickly as anticipated. The yield dropped below 4.2%, losing hold of levels not seen since July.
Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards
Live2 updates
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Tesla stock soars
Tesla (TSLA) stock jumped over 13% premarket Thursday morning, adding tens of billions of dollars in market cap to the Elon Musk-helmed EV company.
Yahoo Finance’s Pras Subramanian reports that Tesla beat analysts’ expectations on adjusted earnings per share and higher gross margins. Musk said he expects the company’s vehicle deliveries will grow 20% to 30% next year. Still, its revenue missed expectations. Here are the details of its third quarter results compared to Wall Street’s forecasts, according to Bloomberg consensus estimates:
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Adjusted EPS of $0.72 vs. $0.60 expected
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Revenue of $25.18 billion vs. $25.4 billion
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Gross margin of 19.8% vs. 16.8% expected
Read the full story here.
Tesla stock has had a rocky few months riddled with ups and downs. The stock surged in anticipation of the company’s third-quarter EV deliveries report and robotaxi event, but plunged when those milemarks disappointed. The company missed Wall Street estimates for third-quarter deliveries in early October.
Wall Street analysts harshly criticized the company’s robotaxi event, saying the company’s self-driving taxi plans were too vague and “light of real numbers and timelines.”
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Good morning. Here’s what’s happening today.
Economic data: Initial Jobless & Continuing Claims, (week ending Oct. 19, week ending Oct. 12); S&P Global US Manufacturing & Services PMI (October preliminary); New Home Sales (September); Kansas City Fed Manufacturing Activity (October); Chicago Fed National Activity Index (September).
Earnings: UPS (UPS), American Airlines (AAL), Southwest (LUV), Dexcom (DXCM), Deckers Outdoor Corporation (DECK), Sketchers (SKX), Coursera (COUR), Dow Inc. (DOW), Honeywell International (HON), Union Pacific Corporation (UNP), Hasbro (HAS), Northrop Grumman Corporation (NOC), Capital One (COF), Beyond, Inc. (BYON)
Here are some of the biggest stories you may have missed overnight and early this morning:
Tesla jumps after earnings surprise, upbeat outlook
Boeing stock falls after workers reject latest labor offer
American Airlines lifts 2024 profit forecast
Southwest reaches agreement with activist, ending long battle
How Musk’s ‘distractions’ could turn into big wins
IBM stock falls amid slowing spending on non-GenAI projects
Consumers are better off than in 2019, but they don’t feel that way
